Written specifically for local churches, this primer will help you step up to the basic internal controls and procedures every church should have.  Why another book on internal control?  There are many wonderful resources available, but they are usually 150 or 200 pages long.  Who has time to read that much?  This book is intentionally short in order to address just the foundational issues.  The conclusion is on page 43, with an 8 page appendix.

Key topics:

• Why bother putting good procedures in place?
• Foundational financial procedures.
• How internal controls protect your staff.
• Basic internal controls that can be easily developed.
• Tax issues frequently encountered in a local church.

Bonus in the appendix:

• Questionnaire to identify specific areas to improve your church’s operations.

Whatever level your church is on, this guide will help you step up to the next level of accountability.

         Where is this book going?

        Why is there a need to step up to the next level?

        The rules have changed and will change more

        It’s the right thing to do

        Where does this book start, and where does it end?

        Definitions

Chapter 2 - Get Up to Speed

        Bookkeeping

        Internal controls

        Processing of payroll

        Personnel policies

        Board of elders

        Everyone knows the expectations

        Communicate widely

        Statement of faith

        Conflict-of-interest policy

        Standards of conduct

        Code of ethics

Chapter 3 - What’s All This Internal Control Stuff About?

        Internal control protects your staff

        Trust is not an internal control

        Fraud triangle

        Segregation of duties

        Dual control over offering

        Donor system maintained by separate person

Chapter 4 - Basic Internal Control Procedures
        Bookkeeper does not sign checks

        Bookkeeper does not make electronic payments

        Dual control over the offering count

        Accounting software

        Pastor never signs checks

        Approval of disbursements

        Supporting documentation

        Separate the offering counters from other work

        Bank reconciliations

        Review of unopened bank statement

        Send year-end receipt for contributions

        Review of reports

        Budgets

Chapter 5 - A Few Tax and Legal Issues

        Why incorporate?

        Employment issues

        Tax-deductible contributions

        Reporting income to the IRS

        Other reporting requirements

Conclusion – Step Up to the Next Level!

Appendix A - Web resources

Appendix B - Diagnotic Checkup - Short Version